Mastercard launching a new piece of software on Tuesday that aids banks in identifying and blocking transactions from fraudulent cryptocurrency exchanges.
The solution is being introduced by Mastercard, with the primary objective to support banking institutions in avoiding fraudulent cases involving digital products. against the backdrop of an increase in criminality in the emerging digital asset market. According to statistics from blockchain analytics company Chainalysis, the amount of cryptocurrency entering wallets with known criminal connections increased to a record $14 billion last year. The year 2022 has also seen a wave of high-profile cyberattacks and con games that target cryptocurrency investors.
Mastercard has established itself as a crypto-focused company in recent years, with several of its managers and directors vocal supporters of the sector.
The payment systems behemoth increased its virtual currency attempts by introducing a function that might decrease fraud and dishonest instances in the industry. Ajay Bhalla, Mastercard’s Leader of intelligence and cyber business, told CNBC that the product is called Crypto Secure.
It uses sophisticated AI techniques to identify criminal networks, making it especially useful for financial institutions. CipherTrace, a crypto startup, will be the architect for launching the platform as a companion in the venture.
Regarding the move, Bhalla stated that the goal is to offer the same level of security for cryptocurrency exchanges as it provides for electronic commerce exchanges for customers, financial institutions, and vendors.
Furthermore, the executive discussed the current market downturn. Regardless of the downward trend, he stays optimistic about the sector, asserting that these cycles emerge and go and that the following bull market is only a matter of time. He believes you must consider the long term and recognize that this is a large and developing marketplace that will most likely grow much larger in the coming years.
Despite the drop and waning investment opportunities, virtual currency scams remain a significant issue. According to Chainalysis research, cybercriminals stole approximately $1.4B in virtual currencies between January and August this year. The most well-known cases involve the Harmony Bridge loophole and the $615M Ronin Bridge target.
Not the first crypto initiative for Mastercard
The monetary services company reached an agreement with the famous exchange Coinbase just before 2022 to encourage the expansion and implementation of NFTs.
Mastercard recruited over 500 experts a couple of weeks later to support the company’s virtual currency projects. The growth differs from the layoffs that occurred at several organizations in the industry, such as Huobi, Bybit, Gemini, CryptoCom, and others.
Mastercard announced another collaboration in April with the virtual asset system Nexo. Both parties launched the first virtual currency token in Europe, allowing customers to splurge without distributing their assets.
The payments company also collaborated with Binance a few months ago. The group launched a prepaid cryptocurrency card in Argentina, allowing residents to resolve bills in any Argentine shop or location that receives Mastercard.